Settlement Alerts

How to Read These Settlement Alerts

Each alert above shows an actual case our firm resolved with the IRS in the last 12 months, with the original tax balance and the final settled amount. The figures are pulled directly from IRS Forms 656 (Offer in Compromise acceptances), 433-D (Installment Agreement terms), and notices confirming Currently Not Collectible status.

What These Numbers Don't Mean

Acceptance is fact-specific. A $200,000 OIC accepted at $5,000 does not mean every $200,000 balance can settle for $5,000. The IRS's reasonable-collection-potential (RCP) formula weighs your equity in assets, future income, allowable living expenses by household size and county, and your CSED. Two taxpayers with identical balances can have RCPs that differ by an order of magnitude.

Methodology Notes

Cases are listed by the tax year of the original liability, not the year we resolved them. Most OICs take 6 to 12 months from filing to acceptance; partial-pay Installment Agreements close faster. We exclude cases still in appeal and any matter where the taxpayer asked to remain anonymous beyond what's already shown.

Past results don't guarantee future outcomes. The IRS publishes its OIC acceptance rate at irs.gov/payments/offer-in-compromise — historically around 30 to 40 percent of submitted offers get accepted. Our acceptance rate is higher because we screen cases before filing, not because our attorneys negotiate harder.

What to Do With This Information

If your balance, asset profile, and disposable income look similar to one of the cases shown, that's a useful starting reference for a conversation — not a promise of the same result. Schedule a consultation so a licensed tax attorney can run your specific numbers through the same IRS framework.

Common Misreadings of Settlement Numbers

The largest dollar reduction on a settlement — for example, a $750,000 balance settling for $12,000 — usually reflects a taxpayer with very low equity, very low projected income, and a Collection Statute Expiration Date close to expiration. The reasonable collection potential (RCP) calculation effectively had nothing left for the IRS to collect during the remaining CSED window, which is why the IRS accepted such a small offer. None of those facts are visible on the alert itself, but all of them have to align for that kind of acceptance to happen.

A more typical Offer in Compromise acceptance reduces the balance by 40-80% of the assessed liability when the taxpayer has limited disposable income but real assets (home equity, retirement balances, vehicle equity above the IRS-allowable amount). The IRS pools the quick-sale value of assets plus 12 or 24 months of disposable income to set RCP, and the offer must be at or above that figure to get approved. Partial Pay Installment Agreements (PPIA) often produce equivalent or better outcomes when the CSED is closer to expiring — the math runs differently and the taxpayer keeps more flexibility year-to-year.

What to Ask About Your Own Numbers

Before deciding whether an OIC, PPIA, or Installment Agreement fits your case, three numbers matter: assessed balance per tax period, your CSED on each period (which determines how much collection time the IRS has left), and your monthly disposable income after IRS-allowable expenses for your county and household size. Your most recent IRS account transcript shows the first two; Form 433-F or 433-A computes the third. None of the three are visible on a settlement alert, which is why a similar-looking case can produce a very different outcome on your facts.

This content was written and reviewed by the licensed tax attorneys at Victory Tax Lawyers, LLP. Our attorneys specialize in IRS tax relief and are licensed members of the California State Bar with a nationwide practice.

Last Reviewed: 2026  ·  Meet Our Attorneys →